New Fortress Energy anticipates lower LNG volume in the fourth quarter

Wesley Edens, CEO of New Fortress Energy's energy infrastructure division, said that the company expects a slight drop in liquefied gas (LNG), in the fourth quarter of 2024 due to repairs performed in October on a valve. Edens stated on a quarterly earnings call that its floating LNG facility off the coast of Altamira in Mexico had completed its commissioning and was now operating at 105% its 1.4 million metric ton per annum nameplate capacity. Edens stated that "we are reducing our fourth-quarter guidance modestly because of some maintenance work we've done here, so we will have lower FLNG volumes." Edens did not reveal the original or new volume target.

NFE shares rose just under 2% to $9.70 at the opening of trading after the company announced a profit adjusted for the third quarter of $176.2 millions, up from the $120 million reported in the second quarter. Net income for the third quarter was $11.3m, or $5 cents per share. This compares to a net loss in the second quarter of $86.9m, or $4.10 cents per share.

This week, the power and liquefied gas developer said that it plans to sell or partner with one or more of their businesses in order to improve its financial situation.

The company paid a dividend to shareholders to conserve cash, while negotiating with bondholders a delay in maturities. This deal refinanced the most urgent debt maturities until 2029.

Edens stated that NFE reached an agreement with their bankers and bondholders to refinance its debt until 2029, at a rate of 12%. As part of this refinancing, over $300 million of new capital was raised to provide more liquidity to the company. Edens said that the company is looking into plans to debottleneck Altamira's floating LNG facility to add between 3-10% more production capacity.

Edens predicted that Donald Trump's election as President-elect will result in more LNG capacity being constructed in the U.S., and perhaps lower global LNG prices. This could allow NFE to utilize its assets more effectively, as 80% of their capacity isn't being used. Edens reported that NFE had exported its fourth LNG shipment on Thursday. Curtis Williams is reporting from Houston. (Editing by Jane Merriman, Franklin Paul and Jane Merriman)

(source: Reuters)